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If the Short-Run Macroeconomic Equilibrium Occurs in the Keynesian Range

Question 40

Multiple Choice

If the short-run macroeconomic equilibrium occurs in the Keynesian range of the short-run aggregate supply curve, then a decrease in the income tax rate will lead to:


A) an increase in the equilibrium price.
B) a decrease in the equilibrium price.
C) an increase in the equilibrium output.
D) a decrease in the equilibrium output.

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